Oak Laurel | Bad Credit Home Loans
- Poor credit history
- Mortgage arrears
- Rental arrears
- Loan defaults
- Adverse court judgments
- Discharged bankruptcy
- Part 9 agreements
- Part 10 agreements
- Payment arrangements
Contact us about a bad credit home loan
An Oak Laurel mortgage broker will go through your situation with you to ascertain the best way forward.
Bad credit home loans are also known as:
- Bad credit loans
- Bad credit mortgages
- Bad credit history home loans
- Credit impaired home loans
- Credit impaired mortgages
- Non-conforming home loans
- Non-conforming mortgages
- Specialist loans
Bad credit loans are mortgages for borrowers who may have circumstances which mean they do not meet the requirements of the normal banks and lenders.
What does bad credit mean?
This is where you have missed a payments on your mortgage or home loan. Lenders will be more wary the greater the number of mortgage payments you have missed in the recent past.
Typically, normal banks and lenders reject home loan applications or mortgage refinance applications even if you have only missed one repayment!
Bad credit history
Adverse listings on you credit file (e.g. your Veda Advantage credit file) such as loan defaults, bankruptcy, adverse court judgments, court writs or too many loan / credit enquiries on your can make normal banks and lenders unlikely to about lend to you.
Credit history with the lender
Your past credit history with the lender you are applying for can impact your application. If you have had a problem with the lender in the past they are less likely to approve a further loan application.
Unpaid bills or unpaid tax debt
Unpaid bills such as council rates or late tax bills are types of bad credit history usually do not show up on your credit file but can be seen by the lender on the supporting documents you need to provide.
If you have too much debt for your income or your total liabilities are greater than you total assets then many banks and lenders will assess you as being insolvent and will not lend to you.
Who can get a bad credit home loan?
Bad credit home loans are typically for people who have had unfortunate events such as a relationship breakup, divorce, lossed their job, had an injury, had a business failure or some other loss of income or assets which has resulted in adverse records on their credit file.
In many cases there is a valid reason why you have bad credit.
Bad credit home loans are generally for borrowers who may have:
- Adverse credit history
- Existing home loan arrears or defaults
- Credit card arrears or defaults
- Personal loan arrears or defaults
- Too many debts and are finding it difficult to consolidate
- Been declined by another lender
Bad credit home loan types
- Home loan with a small paid default
- Home loan with more than one small paid default
- Home loan with moderate paid defaults
- Home loan with large paid defaults
- Home loan with unpaid defaults
- Home loan with judgements or court writs
- Home loan with a part 9 agreement
- Home loan with discharged bankruptcy
- Low Doc Bad Credit Home Loans
- Bad credit consolidation loan
Helpful information for bad credit home loan applicants
Specialist lenders for bad credit
Oak Laurel mortgage brokers know specialist bad credit lenders that are much more flexible than the major banks and many other lenders.
However, the interest rates that are offered reflect the risk to the lender. Therefore, if the lender assesses you as higher risk they will charge you a higher interest rate.
Specialist lenders will assess your bad credit home loan application on a case by case basis and consider your explanation about why you have bad credit and why you need debt relief.
These lenders can often rapidly approve bad credit home loans to meet deadlines from your creditors.
Bad credit home loans are assessed on a case by case basis by specialist lenders.
The worse your credit history, the higher the risk the lender will consider you and more limited your options will be and the higher interest rates will be.
Typically, bad credit home loans are priced based on:
How long ago the credit defaults were listed on your credit file / credit report. The more recent the credit problems the worse it looks to the lender.
If you have paid, settled or unpaid defaults/judgments at the time of application. The lender will look more favorably on your application if you have paid rather than unpaid defaults.
The type of the defaults of judgments. Generally phone bills, power bills, water bills, gas bills or other utility related defaults are less severe than bank or financial institution related default listings.
The proportion of the property value (loan to value ratio - LVR) that you are applying to borrow. If the proportion of property value that you are applying to borrow is low it is lower risk for the lender and the interest rate is also typically lower.
Your income situation. Applicants with proof of sufficient income are considered lower risk. If you have stable employment and can provide sufficient evidence (such as pay slips and group certificates) you will be considered as lower risk and receive a lower interest rate all other things being equal. If you are self-employment without the required financials you will be considered higher risk and be charged a higher interest rate all other things being equal.How are bad credit home loans assessed?
Oak Laurel Mortgage Brokers – bad credit home loans made easy!